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what happens if they cancel?

Discussion in 'Lawn Mowing' started by bobbygedd, Jun 9, 2005.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    for you guys that use a flat monthly rate for billing, and get a little up front, how do you handle cancellations? here is an example: at the begging of the year, they sign up for scu @ $200, 30 mows @$30 ea=$900. fcu@$300. fert program @$300. so, i add it all up =$1700. i divide this by 10, and get 10 equal payments of $170, all due by the 1st of the 10 months. now, we don't actually start working till april, but i get a payment march 1st, and april 1st, so i'm way ahead of them. so what would happen if.....your client on this payment arrangement cancelled in , let's say, mid july. at this point, you would have collected from them $850 in fees to date. you would have completed- scu@$200. 13 grasscuts @$30 ea=$390. 2 fert apps, 1 pre -em, one broadleaf post, and usually a surface feeding insect app. these can't be broken down, fert programs are sold as full programs only. how do you come to a "settlement" on who gets what? also, the prices were based on a seasonal pkg, if the relationship is severed, there is no longer a seasonal pkg, should the prices on each item be raised a bit? thank you
     
  2. willretire@40

    willretire@40 LawnSite Bronze Member
    from VA
    Messages: 1,390

    i would put in the contract that once they cancel there are no refunds. That would be good so that you wont lose money and you dont have to put in a cancelation fee. Will help on the amount of cancels that you get a year i would think.
     
  3. BALDEAGLE

    BALDEAGLE LawnSite Member
    Messages: 133

    I charge for all services rendered up to that point, at up to 25% increase.(as if they were one time gigs). like you said, no pkg.---no pkg. prices.
    if they happen to have paid over...too bad.
     
  4. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    i like it.........
     

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